Yahoo Finance Does James Cropper's (LON:CRPR) CEO Salary Compare Well With The Performance Of The Company?
Phil Wild became the CEO of James Cropper PLC (LON:CRPR) in 2012, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for James Cropper.
See our latest analysis for James Cropper
How Does Total Compensation For Phil Wild Compare With Other Companies In The Industry?
According to our data, James Cropper PLC has a market capitalization of UK£91m, and paid its CEO total annual compensation worth UK£299k over the year to March 2020. Notably, that's an increase of 21% over the year before. We note that the salary portion, which stands at UK£204.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below UK£150m, reported a median total CEO compensation of UK£300k. This suggests that James Cropper remunerates its CEO largely in line with the industry average. What's more, Phil Wild holds UK£244k worth of shares in the company in their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£204k | UK£198k | 68% |
Other | UK£95k | UK£49k | 32% |
Total Compensation | UK£299k | UK£247k | 100% |
On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. According to our research, James Cropper has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
James Cropper PLC's Growth
Earnings per share at James Cropper PLC are much the same as they were three years ago, albeit with slightly higher. Its revenue is up 3.4% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has James Cropper PLC Been A Good Investment?
Since shareholders would have lost about 48% over three years, some James Cropper PLC investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we touched on above, James Cropper PLC is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for James Cropper that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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